Reportable Segment Information - Notes to Financial Statements

3 Months Ended

Jul. 28, 2012

Reportable Segment Information [Abstract]

Reportable Segment Information

NOTE 5 – REPORTABLE SEGMENT INFORMATION:

The Company has determined that it has four operating segments, as defined under ASC 280-10, including Cato, It's Fashion, Versona Accessories and Credit. As outlined in ASC 280-10, the Company has two reportable segments: Retail and Credit. The Company has aggregated its retail operating segments based on the aggregation criteria outlined in ASC 280-10, which states that two or more operating segments may be aggregated into a single reportable segment if aggregation is consistent with the objective and basic principles of the Statement, if the segments have similar economic characteristics, similar product, similar production processes, similar clients and similar methods of distribution.

The Company's retail operating segments have similar economic characteristics and similar operating, financial and competitive risks. They are similar in nature of product, as they all offer women's apparel, shoes and accessories. Merchandise inventory of the Company's operating segments is sourced from the same countries and some of the same vendors, using similar production processes. Clients of the Company's operating segments have similar characteristics. Merchandise for the Company's operating segments is distributed to retail stores in a similar manner through the Company's single distribution center and is subsequently distributed to clients in a similar manner, through its retail stores.

The Company operates its women's fashion specialty retail stores in 31 states as of July28, 2012, principally in the southeastern United States. The Company offers its own credit card to its customers and all credit authorizations, payment processing, and collection efforts are performed by a separate subsidiary of the Company.

NOTE 5 – REPORTABLE SEGMENT INFORMATION (CONTINUED):

The following schedule summarizes certain segment information (in thousands):

Three Months Ended							Six Months Ended
July 28, 2012		Retail		Credit		Total	July 28, 2012		Retail		Credit		Total
Revenues	$	232,230	$	1,833	$	234,063	Revenues	$	505,772	$	3,635	$	509,407
Depreciation		5,729		13		5,742	Depreciation		11,487		26		11,513
Interest and other income		(985)		-		(985)	Interest and other income		(1,891)		0		(1,891)
Income before taxes		26,747		880		27,627	Income before taxes		77,281		1,638		78,919
Total assets		495,526		77,856		573,382	Total assets		495,526		77,856		573,382
Capital expenditures		10,569		0		10,569	Capital expenditures		19,922		0		19,922
Three Months Ended							Six Months Ended
July 30, 2011		Retail		Credit		Total	July 30, 2011		Retail		Credit		Total
Revenues	$	234,885	$	1,921	$	236,806	Revenues	$	506,592	$	3,874	$	510,466
Depreciation		5,367		4		5,371	Depreciation		10,767		8		10,775
Interest and other income		(949)		-		(949)	Interest and other income		(1,906)		0		(1,906)
Income before taxes		27,330		943		28,273	Income before taxes		74,183		1,582		75,765
Total assets		471,320		77,080		548,400	Total assets		471,320		77,080		548,400
Capital expenditures		11,319		41		11,360	Capital expenditures		15,665		86		15,751

The Company evaluates segment performance based on income before taxes. The Company does not allocate certain corporate expenses or income taxes to the credit segment.

The following schedule summarizes the direct expenses of the credit segment which are reflected in selling, general and administrative expenses (in thousands):

		Three Months Ended				Six Months Ended
		July 28, 2012		July 30, 2011		July 28, 2012		July 30, 2011
Bad debt expense	$	293	$	352	$	596	$	882
Payroll		224		247		445		489
Postage		192		187		385		388
Other expenses		231		188		545		525
Total expenses	$	940	$	974	$	1,971	$	2,284